With black money in foreign bank accounts becoming a political hot potato for the government, the Union Cabinet is likely to clear a proposal by the finance ministry for agreements with Monaco, Jersey and Taipei (Taiwan) on exchange of information on tax matters and avoidance of double taxation at its meeting here on Thursday.
India has completed negotiations on 10 new tax information exchange agreements with the Bahamas, Bermuda, British Virgin Islands, Isle of Man, Cayman Islands, Jersey, Monaco, St Kitts and Nevis, Argentina and the Marshall Islands, out of 22 identified countries and jurisdictions. The government has already amended pacts with 23 countries to get information from banks.
“Of the 10 countries and jurisdictions with which India has completed negotiations, the finance ministry has decided to go with three — Monaco, the municipal government of Jersey and Taipei (Taiwan),” sources said. The agreement with Monaco and Jersey will deal only with exchange of information on tax matters, but for Taipei — which is not a tax haven — India will ink a deal to ensure “avoidance of double taxation” and “prevention of fiscal evasion with respect to taxes on income,” the sources said.